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Gregory Levine
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Although I dabbled with a high school stock picking project, my first memorable experience of the stock market was the Dot.Com crash. My Grandmother gave me some Lucent stock to help pay for college. I vividly remember reading that Lucent was the most widely held stock in America. "If... More
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  • Somebody's Got to Do It 0 comments
    Oct 14, 2010 11:52 AM | about stocks: DJSP, LPS
    Everyone now knows about the foreclosure mess.

    But somebody's got to do them eventually. Let's not forget that paperwork problems or not, these loans are in default.

    So I bought a very small position in a clobbered company:

    Buy 0.5% long position in DJSPW.

    These are August 2012 $10 warrants on DJSP, a Florida foreclosure paperwork company. These warrants become regular shares at expiration if DJSP is at $10 or more, so they act like a long-dated call option. There are no options on DJSP.

    Lender Processing Services' (NYSE:LPS) subsidiary, DocX, has a price list for banks that includes measures to "create missing intervening document," and "recreate entire collateral file." LPS is down to $27 from a 52-week high of $44, while DJSP is down from $13 to $2. Once (if?) the regulatory oversight is cleared up, I believe they could generate a healthy cash flow for years. Who knows, maybe fixing the document mess will raise the cost to banks along with DJSP's profit.

    Disclosure: long DJSP, long DJSPW
    Themes: foreclosure fraud Stocks: DJSP, LPS
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